New Halo Sparks Excitement Among Mitsubishi's DealersThe arrival of the three-row 2022 Outlander crossover has breathed new life into Mitsubishi, and the automaker is putting money into models such as the Eclipse Cross to keep them fresh. Automotive News reports that Mitsubishi Motors' last halo vehicle was a turbocharged, all-wheel-drive sedan with 303 hp that exited the market as the 2015 Lancer Evolution Final Edition. The automaker's newest halo vehicle is a three-row crossover that also draws $40,000 transaction prices and is once again bringing energy back to the Mitsubishi name — along with a wealthier clientele more concerned with fresh product than distressed pricing. Mitsubishi dealers are breathing a sigh of relief since the April arrival of the 2022 Outlander after years of discounting mature products, such as the outgoing Outlander compact and the decade-old Outlander Sport subcompact. "The Outlander has come out of the gate on fire," said Mark Chaffin, COO at Mitsubishi Motors North America. "It's been a long time since Mitsubishi had that level of energy, excitement for a new product." Click here for more on Mitsubishi's plans.
Volkswagen Sees Global Chip Shortage Worsening in Second HalfVolkswagen warned that the global shortage of semiconductors affecting car production would worsen over the next six months, joining a chorus of auto companies that have dialed down their outlook for the rest of the year. According to the Wall Street Journal, the warnings mark a shift for the industry after auto CEOs and industry analysts had predicted the chip crisis would bottom out in the second quarter, leading to a gradual improvement over the next six months. “The impairment from the shortage of semiconductors has shifted and will more likely lead to impairments in the second half of the year,” Volkswagen said in a statement on Friday. AlixPartners, a global industry consulting firm, predicted in January that the chip shortage would cost global auto makers $61 billion in lost revenue this year. But in May, AlixPartners revised its projection upward to $110 billion. The firm said that overall auto makers are expected to sell about 80.7 million new cars this year, down from an earlier estimate of 84.6 million. For the full story, including which carmakers are producing less, click here.
Luxury Retailers Are Crushing It — But ...Sales of luxury vehicles surged 63 percent in the second quarter, but the scarcity of microchips could be a drag on numbers during the half of the year. Automotive News reports that the luxury-vehicle segment is on a post-Covid high with sales surging 63 percent in the second quarter compared with a year ago. Premium brands sold a total of 624,414 cars and light trucks in the second quarter, outpacing the broader industry's 49 percent increase. But as the global semiconductor shortage silences assembly lines and taps the brakes on sales activity, that euphoria may subside in the second half. Among luxury names, Lexus had the lowest days' supply at 22, while Infiniti and Genesis tied for the highest inventory levels at a 60-day supply. "The brands that win in the luxury vehicle race this year will be the ones that have inventory of volume models," said Michelle Krebs, executive analyst at Autotrader. For the full story, click here.
Used-Car Industry Flummoxed by Logistics ComplicationsTransportation costs are going up in the wholesale used-car industry for a variety of reasons, including a shortage of drivers, a shortage of transport trucks and a big increase in the average distance used vehicles need to be moved after a sale, reports Wards. Using Manheim’s network, clients including captive and non-captive finance companies, financial institutions and dealers transported about 2 million vehicles in 2020, down from about 2.5 million in 2019, the company says. Dealers on average are buying and selling cars over much greater distances. In the first quarter of 2021, the average distance vehicles were transported was 430 miles vs. 225 miles in the first quarter of 2020. That’s partly because dealers must cast a wider net to find the most desirable vehicles during the ongoing shortage of used-car inventory. For more on the logistical challenges facing retailers, including delivery, click here.
Mazda's Rotary Range Extender on HoldMazda's plans to resurrect its trademark rotary engine as a part of an electrified range extender is now on the back burner. The rotary range extender had been expected next year as part of the company's multiple-solution approach to electrification. Mazda Motor Corp. still plans to resurrect the rotary, reports Automotive News, but first as a power-assist technology for series and plug-in hybrid offerings. "We are still considering using rotary engine as a range extender, but the timing of its introduction is undecided," spokesman Masahiro Sakata said. Mazda's commitment, however, may be shaky. Japanese media reports say Mazda has scrapped plans for using the rotary range extender in the MX-30. Mazda ditched the rotary range extender partly because it required a bigger battery that would make the vehicle too expensive, Japan's Nikkei business daily and Nikkan Jidosha Shimbun reported. For more on Mazda’s plans, click here.
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